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Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset Investment of $2.538 million. The fixed asset will be

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Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset Investment of $2.538 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $2,256,000 in annual sales, with costs of $902,400. Required: If the tax rate is 34 percent, what is the OCF for this project? Multiple Choice $1,258,594 $1,391,078 $1,324,836 OCH 20 mm 4 $1,258,594 $1,391,078 O $1,324,836 O $1,353,600 $55,836

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